Paying too much tax on your commercial or industrial property? Here’s the truth: cost segregation and accelerated depreciation aren’t loopholes — they’re IRS-approved strategies that can unlock six- or seven-figure savings in year one. And with the OBBBA Act of 2025 reinstating 100% bonus depreciation, the opportunity is bigger than ever.
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Why Investors Should CareMost investors think location, tenants, and appreciation. Smart investors also think tax strategy. Cost segregation reclassifies building components — HVAC, lighting, reinforced flooring, refrigeration units, even conveyor belts — into shorter depreciation schedules. That means faster write-offs, stronger early cash flow, and capital back in your pocket when you need it most.
How It Works-
Cost Segregation: Breaks out building elements for 5-, 7-, or 15-year depreciation instead of waiting 39 years.
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Accelerated Depreciation: Front-loads deductions so savings hit today, not decades later.
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Bonus Depreciation (OBBBA 2025): Permanently reinstates 100% first-year write-offs on qualifying assets.
Factories, warehouses, logistics hubs, data centers, and cold storage facilities are packed with specialized systems that qualify. From climate control to advanced electrical, these assets can be depreciated faster — meaning early tax savings that fuel reinvestment and growth.
What You’ll Take Away-
How cost segregation boosts cash flow and ROI
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Why bonus depreciation under OBBBA is a game-changer
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What to watch for: compliance, engineering studies, and IRS documentation
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Real-world case studies where investors saved millions through these strategies
Bottom line: Done right, cost segregation and accelerated depreciation transform a passive tax burden into an active investment strategy. For industrial real estate investors, that can mean the difference between just owning property — and scaling a portfolio faster than the competition.
Want to pinpoint how cost segregation fits into your next commercial property acquisition? Contact us.
When you need to sell, buy, or lease, the Ivy Group is ready to help you reach your goals with more than 100 years of combined experience and expertise in real estate, investment, technology and engineering. Contact us with your next real estate needs.
Copyright ©️ 2025 by Tim Vi Tran, SIOR, CCIM. All rights reserved.
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